China Accelerates Tech Self-Reliance Strategy in New Five-Year Plan Amid US Trade Tensions

China's leader Xi Jinping is anticipated to engage with Trump in discussions in South Korea next week.

China's ruling Communist Party announced Thursday its intention to accelerate self-reliance in science and technology, a strategic initiative that has gained prominence as the United States has implemented increasingly stringent restrictions on China's access to semiconductors and other advanced technological components.

The announcement was released via state media in a communique following a four-day meeting where officials approved a draft of the party's upcoming five-year development plan.

The communique stated that China faces "profound and complex" changes and increasing uncertainty in the global landscape. While not explicitly referencing the ongoing trade conflict with US President Donald Trump, the document comes as Xi Jinping prepares for an expected meeting with Trump in South Korea next week.

According to Gary Ng, a senior economist at French investment bank Natixis, the statement indicates the government's confidence in its ability to counter external challenges through domestic policy initiatives.

"This suggests China will likely demand more concessions from the US to reach an agreement, if one is to be negotiated," Ng observed.

Ng further noted that compared to the previous five-year plan, the government is intensifying its efforts for technological self-sufficiency, income redistribution, and transitioning toward clean energy solutions.

The communique also revealed a leadership change in China's military hierarchy, announcing Zhang Shengmin as the new vice chair of the Central Military Commission, replacing his predecessor who was recently expelled from the Communist Party along with eight other high-ranking military officials.

Zhang, who already served as a member of the commission, holds the rank of general in the People's Liberation Army's Rocket Force.